April 14 2021
UK Inflation at a 30 year high, eventually propelled the GBP up and out of its recent trading range in the low 1.30’s.
This morning resistance is first found at 1.3160, and if broken there is a good chance of a run up to 1.3200/1.3220
Support will be found on dips to 1.3100/1.3090 and of course 1.3060/50
Yesterday USDJPY broke up through 125.80 resistance, on the back of the indifference to JPY weakness being shown by the BOJ and Japanese MOF.
However, a top pattern was made above 126.00, then in New York trading the USD saw a correction back towards support at 125.20/125.10.
If this level is broken the next area of support is going to be found at 124.80.
Resistance is going to be found at 125.70/80, and a break higher would see a continuation of the USD up trend to 126.00, and 126.30.
EURUSD revisited the lows yesterday at 1.0810, however the bounce back to 1.0900/10 resistance has been impressive, and it looks likely the EUR Bulls want to try testing the upside with the next resistance found at 1.0930/40.
The renewed enthusiasm for the single currency has been fuelled by the hope of some sort of tightening coming from today’s ECB meeting.
Should the upside continue a break of 1.0940 could trigger a rally to 1.1000/20.
Support is at 1.0860 and the recent low at 1.0810
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